MESSAGE FROM THE MANAGING DIRECTOR/GROUP CEO - listed companygdexpress.listedcompany.com/misc/csr.pdf · It is GDEX’s belief that no man or company is an island. Business today

GD Express Carrier Bhd (630579-A)24

These are the value propositions that GDEX has identified and hope to enhance them continuously to benefit both the Group and the communities where we operate - values that are based on mutual respect for one another and the principles of accountability, transparency and integrity. Through these values, GDEX hopes to create a future that is sustainable and beneficial to all concerned.

While this may be GDEX’s first ever sustainability report, the Group has been practising corporate sustainability ever since its restructuring in 2000. We realized that we need to engage our stakeholders, customers and suppliers, employees as well as the community, and also take into consideration the conservation of the environment, in our activities.

As GDEX’s express carrier business grows in size over the years, the need to emphasise corporate sustainability becomes all the more important. This is because the Group’s operations are inter-connected with the entire eco-system. How we carry out our activities, thus, determines our future and prospects.

It is GDEX’s belief that no man or company is an island. Business today is all-inclusive as it touches every aspect of the human life. It is based on this principle that GDEX corporate sustainability programme evolves around four pillars – the marketplace, the workplace, the community and the environment.

For GDEX, sustainability is about integrating responsibility with all the eco-system components and aligning it with business strategy. Through this, GDEX hopes to create a better world by providing the access and connectivity through its express carrier services in a sustainable manner.

Thank you.

TEONG TECK LEANManaging Director and Group Chief Executive Officer

MESSAGE FROM THE MANAGING DIRECTOR/GROUP CEO

Welcome to GDEX maiden Sustainability Report 2013. This report highlights the way GDEX leverages its express carrier business to build economic connectivity for its customers, to improve the living standards of its workers, and to contribute to the well-being of the community and the environment.


Annual Report 2013 25

These are the value propositions that GDEX has identified and hope to enhance them continuously to benefit both the Group and the communities where we operate - values that are based on mutual respect for one another and the principles of accountability, transparency and integrity. Through these values, GDEX hopes to create a future that is sustainable and beneficial to all concerned.

While this may be GDEX’s first ever sustainability report, the Group has been practising corporate sustainability ever since its restructuring in 2000. We realized that we need to engage our stakeholders, customers and suppliers, employees as well as the community, and also take into consideration the conservation of the environment, in our activities.

As GDEX’s express carrier business grows in size over the years, the need to emphasise corporate sustainability becomes all the more important. This is because the Group’s operations are inter-connected with the entire eco-system. How we carry out our activities, thus, determines our future and prospects.

It is GDEX’s belief that no man or company is an island. Business today is all-inclusive as it touches every aspect of the human life. It is based on this principle that GDEX corporate sustainability programme evolves around four pillars – the marketplace, the workplace, the community and the environment.

For GDEX, sustainability is about integrating responsibility with all the eco-system components and aligning it with business strategy. Through this, GDEX hopes to create a better world by providing the access and connectivity through its express carrier services in a sustainable manner.

Thank you.

TEONG TECK LEANManaging Director and Group Chief Executive Officer

MESSAGE FROM THE MANAGING DIRECTOR/GROUP CEO

Welcome to GDEX maiden Sustainability Report 2013. This report highlights the way GDEX leverages its express carrier business to build economic connectivity for its customers, to improve the living standards of its workers, and to contribute to the well-being of the community and the environment.

Corporate Sustainability Report 2013


Corporate Sustainability Reportcont’d

The following is a table that shows GDEX’s engagement with the various stakeholders as it pursues its corporate sustainability programme.

StakeholderS engagement

Stakeholder keY engagement area method oF engagement

market PlaCe

Shareholder & Investor * Responsible Business * Annual Report

* Corporate Governance * Quarterly Financial Results announcements

* Dividends * Annual General Meeting

* Investor Relations website

government & regulator * Licensing * Seminar/Conference

* Courier Industry Development Plan

* Courier Industry Rules & Regulations

Customer * Service Satisfaction * Customer Care Centre

* Innovative Offerings * Value Added Services

* Security Protection * Enhanced Liability Coverage

Suppliers, Vendors & Business Partners

* Supplier Evaluation * Compliance with ISO Standards

* Integrators Service * Yearly Supplier Evaluation

* Agents & Contractors * Agent Workshop

* Co-load for domestic and international delivery



StakeholderS engagement cont’d

Stakeholder keY engagement area method oF engagement

Work PlaCe

employee * Workplace * Quarterly Newsletter

* Human Capital Development * Weekly Operational Briefings

* Health & Wellness * Training

* Safety & Security * Teambuilding Activities

* Operational Health & Safety Committee

* Corporate Events

* Staff Welfare & Recreation Club

* Staff Assistance Scheme (staff and distress loans, School Pocket Money, Bursary)

* Defensive Driving

* Fire Drills

* Reading Lab & Indoor Recreation Facility

* Hostel & Accommodation Facility

* Shuttle Bus

CommUnItY

* CSR Involvement * Internship Programme

* Education * Scholarships

* Community Support & Development * Annual Blood Donation Drive & Others (eg. Donations to Orphanage, Orang Asli Community, United Nation World Food and Humanitarian Relief Programmes)

* GDEX Foundation * Established for the welfare of the poor, needy, under privileged, for medical aid, hospitals, clinics, for educational aid, bursaries and loans, and for protection of the environment

enVIronment

****

ISO CertificationsScheduled Waste Disposal3R Initiatives (Reduce, Reuse, Recycle)CO2 Emission

*

*

ISO 9001:2008 (Quality Management System)ISO 14001:2004 (Environmental Management System)


gdeX’S drIVe For a SUStaInaBle FUtUre

In the coming decades, the world will continue to face complex challenges related to a growing population, which population studies say will reach some 8.7 billion by 2040. Technology will increase the pace of economic change, trade and commerce. The world economy is also expected to double in size by 2040, bringing with it enormous social and environmental changes.

There is no doubt that the world is going to face various complexities in business, society and the environment. But given the creativity and drive of the human spirit, the world will strive to create a sustainable future for all.

As a responsible corporate citizen, it is GDEX’s duty to play a role in helping to create this sustainable future for the future generations. In this respect, GDEX has identified four areas where it will strive to improve, that is, the Marketplace, the Workplace, the Community and the Environment.

the marketplace

The Marketplace is where we do business, raise funds and work with the authorities. GDEX focuses on four areas to ensure its business sustainability. These four areas are as follows:

• Customers• Suppliers,vendorsandbusinesspartners• GovernmentandRegulator• ShareholdersandInvestors

Customer

The customer is always top in our list of priorities. GDEX constantly strives to improve service quality by offering innovative product packages and ensuring timely and secured delivery to meet customer needs and satisfaction.

Apart from providing reliable door-to-door delivery service of documents and/or parcels, it also provides express services of special items such as time-sensitive and high value goods. Its specialised products include Next-day Delivery Service, Secured Shipment Delivery Service, Enhanced Liability Coverage, and many other value added services.

For customers requiring comprehensive logistical and warehousing services, GDEX has its Customised Logistics Solutions where its services include security handling for high value items, managing mailroom operations and handling logistics and distribution arrangements.

In recent years, it has also set up a new division – freight forwarding and warehousing – as part of its integrated logistical solutions to meet the evolving needs and requirements of its customers.

Suppliers, Vendors & Business Partners

Our suppliers, vendors and business partners play a vital role in our business operations. GDEX has strict criteria in the selection and evaluation of its suppliers, vendors, agents and contractors, ensuring they meet and comply



with ISO Certification quality standards. We also conduct a yearly supplier evaluation exercise to ensure suppliers keep up with the higher standards set.

GDEX also work closely with its business partners, namely the integrators who co-load with us for domestic and international delivery by integrating our operating systems and processes to meet their requirements.

Government and Regulator

One of the more important development agenda of the Government is to regulate the industry for growth in a sustainable manner. The development and licensing of the express carrier industry is undertaken by its regulator, Malaysian Communications and Multimedia Commission (MCMC), a unit of the Ministry of Information, Communications and Culture, Malaysia (MICCM).

In recent years, MCMC has drafted a Courier Industry Development Plan which charts the courier industry’s development and growth in line with the National Postal Strategy. As one of the key players in the express carrier industry, GDEX regularly attends the briefings, seminars and conferences organized by MCMC. It also provides regular feedback and suggestions to MCMC regarding the development of the express carrier industry.

GDEX also participates actively in MCMC’s activities to promote the development of the industry. GDEX was one of the 14 courier companies that participated in Promoting 1Malaysia Concept through Courier Industry campaign organised by MICCM, MCMC and the Association of Malaysian Express Carriers in 2010. Shareholder and Investor

GDEX’s shareholders are the ultimate owners of GDEX and its group of companies. It is of utmost importance that GDEX is managed in a responsible and profitable manner, with the required corporate governance and cost controls in place. GDEX will ensure there is continued and sustainable growth, with consistent dividends payment to reward shareholders and attract potential investors.

To keep shareholders and potential investors informed and up-to-date with developments in GDEX, the company has created an investor relations website which highlights its financial performance and other important corporate announcements. As part of the Bursa Malaysia requirements, it is also required to furnish quarterly financial results as well as an Annual Report to be tabled at its Annual General Meeting for shareholders approval.

Workplace

The workplace is where GDEX develops its human capital. It is a place where it nurtures and grooms its employees to enable them to handle their job responsibilities in an effective and efficient manner. GDEX also strives to ensure that its trained manpower stay safe, happy, committed and motivated through the following programmes and activities:

• Training• Teambuilding• HealthandWellness• SafetyandSecurity• RecreationalFacilities• AttractiveFringeBenefitsandPayPackages

Training

GDEX provides regular and structured training to all levels of staff, from incoming recruits to its service front line staff, couriers, drivers, supervisors right up to middle and senior executives. It has a Pembangunan Sumber Manusia Berhad (PSMB) certified trainer who plans rigorous training programmes that enhance the professional as well as personal skills and knowledge of its various employees.



To speed up and facilitate training for employees in different parts of the country, GDEX has launched its Multimedia Remote Learning programme (MMRL) in 2011. This programme stretches its training reach to remote locations beyond geographical and time constraints, enabling GDEX staff to undergo some 30,000 hours of training compared to an average of 20,000 hours previously.

Safety and Security

GDEX is committed to maintaining a workplace that is free from theft, violence, harassment, intimidation and other unsafe or disruptive conditions due to internal and external threats. Security cameras are placed strategically in different parts of the premises to deter such illegal and disruptive forces. It also employs external security company to provide 24-hour security services for the entire GDEX building complex.

Recreational Activities

All work and no play makes Jack a dull boy. As a labour-intensive organisation, GDEX ensures that its employees do not become overly stressed by their workloads. To create a more conducive work environment for its staff, three-quarters of whom are involved in operations that require a great deal of physical activity that are time-sensitive and urgent, GDEX organises weekly and monthly activities such as team bowling and futsal for its employees to de-stress. It also set up leisure facilities such as a Reading Lab where staff can relax and read books and magazines in a cool and quiet environment, as well as an indoor recreational centre called “Cube” where staff can socialize and de-stress with board and multi-media games and other indoor activities.

Through its staff welfare and recreational Club, GDEX also organises an annual dinner for its employees. This annual event provides GDEX an opportunity to thank its employees for their hard work, reward long-serving employees and allow everybody to enjoy good food and entertainment.

Teambuilding

Members from different departments at Headquarters and branches in the GDEX group of companies come together for a three-day team building camp. Through various team building games and activities, the participants establish trust and build shared experience with their group members. This type of training improves team dynamics, builds group trust, facilitates good communications and strengthens the bonds of friendship and cooperation. Every year, GDEX organise this team-building event to strengthen staff unity, workplace confidence and creative thinking. Health and Wellness

GDEX has an operational Health and Safety Committee that looks into the health and safety aspects of its employees. This committee monitors the ongoing development in the Malaysian healthcare scene and ensures GDEX employees are safe from epidemics such as bird flu and SARS virus, and environmental hazards like the haze and flood. This committee also organises workplace safety programmes such as Fire-Drills, Bomba Training, Emergency Evacuation Exercises and Defensive Driving Courses (for the company drivers).



Staff Assistance Scheme

As the majority of GDEX employees are blue-collared and on lower salary structure, GDEX often encounters situations where its staff is in financial distress due to family illness, misfortune and educational needs of their children. As a caring employer, GDEX created a special staff Assistance Scheme where “distressed” employees can apply for advances to help tide them over their financial setback.

Attractive Fringe Benefits and Pay Packages

As a fast-growing express carrier with a need to increase its workforce constantly, GDEX has designed an attractive salary structure and good employment benefits for its employees. The company subscribes to a performance based work philosophy. Thus, workers who handle higher workloads based on the growing business, like the couriers, the sorters, drivers and front line staff, are paid extra “incentive allowances” for the additional workload.

GDEX also ensures that its couriers and truck drivers are covered with insurance to ensure that they are well-compensated for any accidents or injuries incurred in the course of work.

For staff who work late, the company provides Shuttle Bus service to ease their transportation problems as well as to ensure their safety. It also provides hostel accommodations to outstation recruits.

Community

The community is the lifeblood of all organisations. As a responsible corporate citizen, GDEX believes in giving something back to the community that has contributed to its growth. GDEX’s corporate social responsibility (CSR) programmes developed since 2000 include the following:

• GivingBacktoSocietyCharityEvents• AnnualBloodDonationcampaign• ScholarshipandInternshipprogramme• GDEXFoundation

Giving Back to Society Charity Events

Every year, GDEX identifies and selects a list of social welfare and humanitarian relief organizations, orphanages and Orang Asli community that are in need of financial assistance. Its CSR team will then visit the organizations to donate much needed relief items, cash, food and other essential needs. The CSR team has an affinity towards children in the orphanages and Orang Asli community, and will make special efforts to organise luncheons and donate educational materials.

The CSR events include the Rumah Anak Yatim Baitul Kasih Orphanage, the Orang Asli Lembah Bertam, Cameron Highlands, the United Nations World Food and Humanitarian Relief, and Tsunami Relief Fund.


Annual Blood Donation Campaign

This annual blood donation campaign, started in 2005, is organized on a community level, involving the public as well as GDEX employees. Apart from internal memos to encourage staff to participate, GDEX puts up posters and banners in the vicinity of its headquarters inviting the public and neighbouring companies to donate blood to the National Blood Bank. To encourage donors, GDEX provides a nutritious meal and goodie bags for every participant. An average of 250 pints of blood is collected yearly for the National Blood Bank.


Scholarship and Internship Programme

GDEX’s scholarship programme aims to provide deserving students with financial assistance in their studies with higher institutions of learning. An average of four students will be selected from around 60 applicants each year to receive GD Express scholarship. Final year students for Degree Programme will receive a total of RM12,000 while Diploma Programme students will receive RM8,000 each.

GDEX‘s internship programme provides opportunity for some 30 undergraduates from public and private higher learning institutions to go through industrial training in GDEX. Introduced in 2004, this programme requires internship students to complete three to six months training in various departments in GDEX, giving them valuable industrial knowledge and work experience.

GDEX Foundation

As part of its efforts to engage the community in more social welfare and communal activities, GDEX established the GDEX Foundation in 2013. Set up with a personal donation of RM3 million from its managing director and group chief executive officer and another RM100,000 from the Group, the Foundation will focus on four charitable objects as follows;

• To provide relief to the poor, aged, sick, old,disabled, orphans and victims of violence and abuse generally and in particular but not limited to providing maintenance and improvement of old folks homes, orphanages, hospitals, hospice, nursing homes, clinics and disability centres

• Toprovide education generally and in particular butnot limited to providing scholarships, bursaries and loans to enable the orphans and the poor to further their education

• Toprovidereliefoffinancialneeds,suchasprovisionof financial, goods and services assistance, provision of temporary residential accommodation, to the poor, sick, victims of natural disasters, wars and riots and to the needy in general

• To protect the environment for the benefit of thepublic in general by providing financial assistance, goods and services and maintenance and preservation of public lands and buildings, of ecological or other scientific importance


the environment

Environmental degradation is on the rise today with the growing world population and the indiscriminate use of technology to enhance profits. Protection of the environment thus become all the more important if the world is to sustain its eco-system for the benefit of future generations.

GDEX is ever conscious of the need to protect the environment and has taken measures to reduce its environment and ecological footprint wherever possible. The measures taken include the following:

• IntroductionofISOCertifications• Reduce,Reuse,Recycle–3RInitiatives• ReductionofCarbonEmission


Introduction of ISO Certifications

In 2012, GDEX integrated its ISO 9001:2008 quality management system and ISO 14001:2004 environmental management system. This integration provides a guideline/framework for GDEX to systematise and improve both its quality and environment management efforts in all its operations. Energy saving efforts like switching off lights and air-conditions during lunch-breaks and a scheduled waste disposal programme are among the items to save cost and protect the environment.

Reduce, Reuse and Recycle – 3R Initiatives

GDEX embraced the 3R (reduce, reuse and recycle) initiatives in early 2000. Today every unit, department, branch and headquarters actively strive to cut down on paper usage by making use of the company intranet system to send memos or messages. Employees also reuse and recycle used paper to save costs.

Reduction of Carbon Emission

With more than 400 vehicles and trucks plying the length and breadth of Peninsular Malaysia and East Malaysia, it is important for GDEX to reduce the carbon emission of its vehicles. When making their rounds of delivery, GDEX drivers are required to switch off their engines to stop idling, reduce fuel waste and carbon emission as part of the company’s efforts to save energy cost and protect the environment.


Conclusion As part of its culture of “continuous improvement,” GDEX will always be looking at ways and means to conserve energy and protect the environment. This is to ensure that future generations will be able to enjoy a better world.

Documents

MESSAGE FROM THE MANAGING DIRECTOR/GROUP CEO - listed companygdexpress.listedcompany.com/misc/csr.pdf · It is GDEX’s belief that no man or company is an island. Business today